Electric Boat Supplier Quality - gdeb.com

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Electric Boat Supplier Quality

Electric Boat Supplier Quality is committed to working with our

suppliers to provide the highest quality materials used to construct

the most advanced nuclear submarines in the world. Our

submarines operate in the harshest environments without support

to complete critical military operations so they must operate the first

time, every time.

Together we deliver the advantage that protects our sailors, our families and our freedom.

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Quality CommitmentElectric Boat sets high standards for our suppliers to ensure product quality

Suppliers must have unyielding commitment for quality performance to deliver high quality material

meeting purchase order requirements

Expectations & Requirements Performance Continuous Improvement

• Robust Quality ManagementSystem

• Management Accountability for Quality Excellence

• Strong Quality Culture• High-Quality Processes,

Procedures and Training/Qualification Programs

• Consistently Meets Contract Requirements

• Measures Quality Performance• Timely Response to EB Supplier

Corrective Action Requests/Inquiries

• Clear Recovery Plan When Performance Does Not Meet Expectations

• Self-Assessment Program• Actionable Trend Analysis• Effective Root Cause

Corrective/Preventive Action Program

408/2021

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EB Supply Chain Management Defined in 5 Phases

Design & SOW Pre-Award(Bidder Selection)

Readiness (Selected)

Execution (Prime & Sub-tier)

Validation

Define critical inspection attributes and hold points

Participate in supplier assessment of processes and capabilities

Define additional required oversight for selected supplier or sub-tier suppliers

Measure and monitor technical performance of supplier and sub-tier suppliers assign corrective action as required

Approve supplier objectivequality evidence (certification package and RT film)

Define sampling and inspection methods

Participate in the identification of supply base risks and evaluate need to develop new suppliers

Develop action plans to improve supplier readiness

Identify, report and mitigate supplier and sub-tier risks as the arise

Validate supplier is ready for inspection

Define certification package requirements

Participate in supplier technical assessments

Verify supplier process controls and improvements

Final inspection and acceptance

Define supplier development and actions Electric boat subject matter experts on site as necessary

Assess and validate supplier and sub-tier capability and capacity (STA, capacityassessments, risk mitigation actions)

In-process audits, inspection and oversight

Actively monitor supply base performance for risks and proactively take action to mitigate (ISAs, in-process audits, etc.)Communicate supply base risk to suppliers to increase awareness and mitigate efforts

Supply base developmentDevelop and maintain a supplier culture of quality and performance

Monitor supplier’s quality performance and take actions to improve performance

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Tools Used to Address Supplier and Product RiskProduct vs. Supplier Risk Matrix

EXISTING PRODUCT NEW SUPPLIER

NEW PRODUCT

EXISTING SUPPLIER

NEW PRODUCT

NEW SUPPLIER

EXISTING PRODUCT

EXISTING SUPPLIER

PRODUCT RISK

SUP

PLI

ER R

ISK

• SUPPLIER TECHNICAL

ASSESSMENT

• IN-DEPTH SUPPLIER ASSESSMENT

• MANAGEMENT PLANS

• SCOPE OF WORK

• EMBEDDED HOLD/WITNESS POINTS

• FULL TIME ON-SITE PRESENCE

• AUDITS/SURVEILLANCES

• PART NUMBER REVIEW

• SPEC REVIEW

• RISK REVIEW BOARDS

• SUPPLIER TECHNICAL ASSESSMENT

• IN-DEPTH SUPPLIER ASSESSMENT

• MANAGEMENT PLANS

• SCOPE OF WORK


• FULL TIME ON-SITE PRESENCE



• ON-SITE PRESENCE



• ANNUAL CRITICAL SUPPLIER

ASSESSMENTS


• SUPPLIER TECHNICAL

ASSESSMENT

• ON-SITE PRESENCE

• PART NUMBER REVIEW

• SPEC REVIEW



• ANNUAL CRITICAL SUPPLIER

ASSESSMENTS

708/2021

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Realize Growth as an Electric Boat Supplier

• Electric Boat offers various programs and levels of qualifications in which suppliers can participate.

A few examples are:

• Level 1

• Nuclear

• Welding

• Non-Destructive Testing (NDT)

• Qualification to participate in certain programs and levels involves the following:

• Process audits

• Enhanced material control

• Procedure approvals

908/2021

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Quality Requirements

• Quality requirements from Electric Boat are found in specification EB2678

• EB2678 can be found on the Supplier tab of the Electric Boat webpage

• EB2678 contains requirements for:

• Documentation/Records

• Drawing and Document Control

• Design Changes

• Material Control

• Nonconforming Material Control

• Manufacturing and Special Processes

• Inspection

• Corrective Action System

• Audits

• Material requirements are found in Purchase Order documents

• Strict adherence to both the quality requirements of EB2678 along with the material requirements of

the Purchase Order is required

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Managing Supplier Quality Performance

Supplier Quality organization lines of effort work together to measure, assess and address suppliers’

quality performance

Risk Assessment

Supplier

Supplier Quality Engineering (SQE)

Scorecards

Supplier Corrective Actions

Quality Action Plans

Purchase Order Approval

Inspection

Source Inspection

Receipt Inspection

In-Process Product Inspection

Audit/Surveillance

Process/NAV Audits

In-Depth Supplier Assessments

Surveillance

In-Process Product Audits

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Electric Boat Integrated Supplier Management Cycle

Supplier Management Cycle is driven by:

• Performing Integrated Assessments

• Inputs from Purchasing, Engineering,

Supplier Quality, Risk Data and Subject

Matter Experts (e.g. Welding, NDT)

• Defining/Implementing Corrective Actions

• Prioritized and informed by the integrated

assessment

• Informs oversight methods and corrective

action plans

• Managing Work Execution

• Follow up and monitor progress with

corrective action plans

• Oversight of work execution

• Feed data back to the integrated

assessment

Product Audits

Surveillances

Inspections

Quality Action Plans

Supplier Corrective Actions

Supplier Scorecards

Metrics/Trends/Data & Risk

Assessments

Audits/In-Depth Supplier

Assessments

Annual Critical Supplier

Assessments

Assessment

Define/Implement Corrective Actions

Manage Execution

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Monitoring Suppliers Using Supplier Management Plans

• Supplier Management Plans are developed by Supplier Quality Engineers to provide:

• Expectations for supplier performance

• Action plans for supplier development

• These plans are also used by Supplier Quality Engineers as:

• A baseline to measure supplier growth

• The basis for Supplier Quality Engineer and Audit Group scheduling for supplier visits

• A platform for supplier assessments

• Supplier Risk profiles provide vital input to Supplier Management Plans

Assessment


Manage Execution

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Supplier Quality ScorecardWhat is a Supplier Quality Scorecard?

• The assessment and scoring methodology is both qualitative based on interaction with the supplier

and quantitative based on quality data in the following areas:

• Supplier reported in-process non-conformances (Vendor Information Requests)

• Source & Receipt Inspection acceptance rating

• Post delivery non-conformances (ERs/CNs)

• Supplier Corrective Action Reports (SCARs)

• Level of Confidence assessment by cognizant engineer

Assessment


Manage Execution

Total Score (Max 100 pts) Classification

90 and above Green – Meets Expectations

75-89 Yellow – Meets Minimum Expectations; Improvement Needed

74 and below Red – Does Not Meet Expectations

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Supplier Quality Scorecard – How Points Are EarnedOverall total possible points = 100

• In-Process Non-Conformances documented on (Vendor Information Requests) VIRs

• 20 points possible

• Number of applicable supplier responsible VIRs dispositioned in the past 12 months

• The supplier’s combined active and received PO value being used to scale VIR points

• Source and Receipt Inspection Results


• Post Delivery Non-Conformances


• Number of applicable supplier responsible ER-CNs reviewed in the 12-month assessment period

• Supplier Corrective Action Requests (SCARs)


• Number of SCARs that were open, new or closed during the scoring period

• Level of Confidence


• Culture of Quality, Supplier Engagement

Positive or negative adjustments may be made to scores based on holistic evaluation of complexity of

products and supplier performance

Assessment


Manage Execution

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Supplier Quality ScorecardHow is a Supplier Quality Scorecard Used?

• Assess the supplier’s ability to perform to Electric Boat’s requirements

• Determine appropriate actions to take including:

• Supplier Quality Action Plans (QAP)

• Frequency of Electric Boat Assessments and Audits

• Quality and Procurement Status

• Conduct informed conversations with suppliers on their quality performance

• Provide information and assessments to help determine:

• Procurement decisions

• Risk mitigation actions

Assessment


Manage Execution

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Supplier Quality ScorecardEB and Supplier Actions Based on Score

Assessment


Manage Execution

• Favored for procurement awards

• Reduced inspection frequency

• Reduced depth/frequency of audits

• Limited procurement

• Normal inspection frequency

• Normal depth/frequency of audits

• Reduced or stop procurement

awards

• Increased inspection frequency

• Increased depth/frequency of

audits

Green –

Meets

Expectations

Yellow –Meets Minimum Expectations; Improvement

Needed

Red –Does not meet Expectations

• Review of assessment with Supplier’s Quality Management

• Discuss opportunities for process enhancements to sustain performance

• Communicate concerns that may be indicators of declining performance

• Status the effectiveness of ongoing and completed corrective actions

• Continue to perform oversight per standard practices

• Review of assessment and Quality Action Plan (QAP) with Supplier’s Management and EB SMEs as

appropriate

• Communicate areas of improvement and document via SCARs/SMO Commitments if necessary

• Establish a cadence of regular communication with the supplier on the development planned actions

and the effectiveness of ongoing and completed corrective actions

• Develop an enhanced oversight plan to monitor areas of needed improvement

• Require meeting with the Supplier’s and EB’s Senior Management teams on assessment, problem

statements and Quality Action Plan (QAP)

• Formally communicate that the supplier is not meeting expectations via SCAR and Letter of Concern

and require the supplier to take action to correct

• Establish a cadence of regular communication with the supplier’s leadership on their status to the

improvement plan

• Develop an enhanced oversight plan to monitor effectiveness of plan and ensure quality product is

delivered

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Auditing and In-Process Inspections to Verify Procedural

Compliance

• Audits/Surveillance are tools used to monitor process and work execution

• QMS/NAV Audits focus on supplier processes

• Audits performed periodically

• Example topics: Material Control, Inspection & Testing, Calibration, Non-destructive Testing,

Documentation and Data Control, etc.

• In-Depth Supplier Assessments (ISA)

• Focus on execution of processes through assessment of the supplier’s performance of work

• Participation may include subject matter experts, government representatives and/or Newport

News Shipbuilding

• In-Process product inspections are performed to witness procedural compliance and process controls

• Audits are assessments of:

• Baseline supplier health

• Quality Management System effectiveness

• Supplier’s Quality Culture

• Conformance to contractual requirements

• Execution of work as a result of processes, procedures and QMS

• Audit and Surveillance metrics inform supplier quality scorecard process and risk assessments

Assessment


Manage Execution

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Supplier Corrective Action Requests (SCARs)

• SCARs are issue for supplier non-conformances and systemic issues

• Sources include, but are not limited to, Inspections, Audits, Scorecards and trends

• SCAR trends are used in the supplier quality scorecard assessment

• Level and formality of response is dependent upon severity of non-conformance identified

Assessment


Manage Execution

SCAR Level Definition Actions

Low (A&B) Minor administrative error or hardware deficiency identified

No supplier response required; used to analyze trends

Medium (C) Major problem or trend identified Corrective Action, Causal Analysis, Preventive Action, Evaluation for impact on previously delivered material and effectiveness of Corrective/Preventive Actions taken

High (D) Critical problem or trend identified Corrective Action, Causal Analysis, Preventive Action, Evaluation for impact on previously delivered material and effectiveness of Corrective/Preventive Actions taken, Teleconference with EB

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Quality Action Plans (QAP)Supplier Ownership and Commitment

• Quality Action Plans (QAP) are developed as a result of negative scorecard assessments or negative

trend analysis

• QAPs are based on actionable data for suppliers to self-assess and develop corrective action plans to

address systemic issues

• QAPs are communicated to suppliers and tracked by Medium or High level Supplier Corrective Action

Requests (SCARs)

• Execution of QAPs influences supplier quality scorecard process

Assessment


Manage Execution

Electric Boat Supplier

Increased Engagement across Supply Chain Management

Acknowledgement of concerns and commitment to improve

Increased Oversight and Developmental Actions Development and Ownership of Corrective Action Plans

Actions Focused on Known Risks Focused Development Actions

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In-process and Final Inspections Are Performed to

Validate Product Compliance

• Certification Package

• Required OQE, as defined by purchase order requirements, is submitted for approval prior to

hardware inspection to validate contractual compliance through documentation review

• Hardware Inspection

• Hold points performed on in-process work to validate execution steps and reduce risk

• Source Inspection performed at supplier’s facility prior to shipment to EB

• Receipt Inspection performed upon receipt of material at EB facility

• Inspection metrics inform supplier quality scorecards and supplier quality performance

Certification of material is the responsibility of the supplier.

Suppliers are expected to deliver high quality certification

packages and material.

Assessment


Manage Execution

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Malpractice Prevention Program

• Malpractice Prevention Programs are required by contract

• What is malpractice?

• Malpractice: Any intentional or inexcusable deviation from established engineering, production,

certification or inspection requirements, or procedures and is a dereliction of professional duty or a

failure of professional skill that results in less than contract compliance

• Elements that often lead to malpractice are:

• Pressure – motive to commit malpractice

• Rationalization – justifying behaviors of malpractice

• Opportunity – the ease at which malpractice can occur

Consequences can be severe, including imprisonment and fines

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Malpractice Prevention ProgramHow is malpractice prevented?

• Be aware and vigilant for Malpractice and Fraud and Falsification (F&F)

• Individual accountability for procedural compliance

• Know what governs work being performed

• Ask for assistance if unsure of instructions

• Always follow documented procedures and processes

• Never falsify records

• Report issues to EB in a timely manner

• Flow down requirements to sub-tier suppliers

Consequences of malpractice and fraud & falsification could

involve functional failure of product in operation on land or at

sea, causing loss of equipment and life.

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Supplier Communications from EB

• Electric Boat uses a variety of vehicles to communication expectations, requirements and other

information to suppliers

• Communication of Contractual Requirements include but are not limited to:

• Purchase Order documents

• EB2678

• Quality Bulletins

• Targeted quality alerts and lessons learned

• Communication of Information Guidance include but are not limited to:

• Letter of Concern

• Supplier Information Bulletin (SIB)

• Quarterly publication to supply base

• Pertinent information from Electric Boat

• Industry quality trends

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Communicating with EB

• There are various means by which suppliers can communicate with Electric Boat. Some examples are:

• Reporting Non-Conformances

• Vendor Information Request (VIR)

• Non-Conformance type VIR

• Use for material not yet delivered

• Letter of Advisement (LOA)

• Use for delivered material

• Submitting OQE


• VSI type VIR

• Use for vendors participating in VSI (Virtual Source Inspection)

• Submitting procedures for approval


• Vendor Procedure Approval Request (VPAR) type VIR

Electric Boat Supplier Quality - gdeb.com

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